Togo's Sandwich Shop had the following long-term asset balances as of January 1, 2021: Cost Accumulated Depreciation Book Value Land 74,000 − $74,000 Building 549,000 $(104,310 444,690 Equipment 122,200 (27,800 94,400 Patent 97,500 (39,000 58,500 Togo's purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 8-year useful life using the straight-line method with an estimated residual value of $11,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2019 and 2020. Required: 1. For the year ended December 31, 2021, record depreciation expense for buildings and equipment. Land is not depreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Togo's Sandwich Shop had the following long-term asset balances as of January 1, 2021: Cost Accumulated Depreciation Book Value Land 74,000 − $74,000 Building 549,000 $(104,310 444,690 Equipment 122,200 (27,800 94,400 Patent 97,500 (39,000 58,500 Togo's purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 8-year useful life using the straight-line method with an estimated residual value of $11,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2019 and 2020. Required: 1. For the year ended December 31, 2021, record depreciation expense for buildings and equipment. Land is not depreciated. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...
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Question
Togo's Sandwich Shop had the following long-term asset balances as of January 1, 2021:
| Cost | Accumulated |
Book Value | |
| Land | 74,000 | − | $74,000 |
| Building | 549,000 | $(104,310 | 444,690 |
| Equipment | 122,200 | (27,800 | 94,400 |
| Patent | 97,500 | (39,000 | 58,500 |
Togo's purchased all the assets at the beginning of 2019 (3 years ago). The building is depreciated over a 20-year service life using the double-declining-balance method and estimating no residual value. The equipment is depreciated over a 8-year useful life using the straight-line method with an estimated residual value of $11,000. The patent is estimated to have a five-year service life with no residual value and is amortized using the straight-line method. Depreciation and amortization have been recorded for 2019 and 2020.
Required:
1. For the year ended December 31, 2021, record depreciation expense for buildings and equipment. Land is not depreciated. (If no entry is required for a transaction/event, select "No
Journal entry worksheet
Record the depreciation on the building.
|
Journal entry worksheet
Record the depreciation on the equipment.
Note: Enter debits before credits.
|
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